Pending home sales rise more than expected

Pending home sales rose 1.3% in July, according to the
National Association of Realtors.

Compared to the prior year, sales fell 2.2%.

Economists had forecast that pending sales, which measure
contract activity and are an indicator of future existing
home sales, rose 0.7% month-on-month, according to Bloomberg.

Year-on-year, they forecast an increase by 2.2%.

"More home shoppers having success is good news for the
housing market heading into the fall, but buyers still have few
choices and little time before deciding to make an offer on a
home available for sale," said Lawrence Yun, the NAR's chief
economist, in the
release.

He noted that according to realtors, there's huge
demand for affordable single-family starter homes and
townhomes, as homebuilders shift away from constructing larger,
expensive houses.

The pending home sales index in the west rose to the highest
level since June 2013. Sales were supported by strong job gains,
Yun said. The labor market should continue to support sales if
affordability improves and construction increases, he
added.